Russian stocks close higher on domestic key rate optimism

MOSCOW, Apr 20 (PRIME) -- The Russian stock market advanced on Thursday due to internal factors despite an uncertain global environment, analysts said.

The MICEX grew 0.82% to 1,932.17 and the RTS rose 1.39% to 1,083.35.

In early trade, the stock exchanges traded in the red territory on the back of a sharp slide of the Brent oil price to below $53 per barrel.

“The U.S. crude inventories data was published yesterday. The Energy Information Administration said the reserves decreased by 1 million barrels, but the market participants had been waiting for a stronger decline so the news pressured the prices,” Gleb Zadoya, head of research department at Analitika Online, said.

Forex Club analyst Irina Rogova said that the external geopolitical background including tensions between the U.S. and North Korea and the up-coming elections in France also encourage no positive investor sentiment.

Rogova added that later in the day the Russian market was supported by comments of the Central Bank Chairwoman Elvira Nabiullina. The indices reversed after Nabiullina said that the authority may discuss reduction of the key rate by 25–50 basis points at the next meeting of the board of directors on April 28 due to a stable decrease of inflation.  

Russia’s biggest lender Sberbank was among the top gainers following the news that its supervisory board recommended more than tripling the 2016 dividends on the year to 6 rubles per share or 25% of the IFRS net profit, the stock surged 3% to 158.21 rubles.

Below are the MICEX’ five most active stocks on Thursday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+3.00%	158.21	9.968
Gazprom	+0.36%	121.99	4.000
Lukoil	-0.03%	2858.00	1.983
Moscow Exchange	+2.54%	109.20	1.505
ALROSA	+1.05%	89.25	1.307

(56.1753 rubles – U.S. $1)

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